Yesterday, Governor Andrew M. Cuomo and Benjamin M. Lawsky, the Superintendent of the Department of Financial Services, announced a proposal that would authorize shared appreciation mortgage modifications for New Yorkers. And there was more exciting news later in the day: Representative Mel Watt was confirmed by the Senate as the new director of the Federal Housing Finance Agency. The Center issued statements on both announcements, which you can read here.
For homeowners in New York City, the approval of shared appreciation mortgage modifications and the confirmation of Rep. Watt together have the potential to significantly increase the number of modifications with principal reduction to homeowners who need it most. In the previous blog post, we outlined why we support principal reduction for underwater homeowners. Principal reduction can prevent foreclosures, make housing affordable, and encourage continued investment in our neighborhoods. We encourage you to share this exciting news with your network.